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tv   [untitled]    January 1, 2013 9:30pm-10:00pm PST

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visited our toilets. at long last they have what is called water flows that are going to save us millions of gallons of water. this is in our great city hall in the year 2012. and i think in the year 2013 that will be accomplished. that's good. that's in keeping with our policies. finally, as espinola jackson stated, or dr. jackson stated, the factor had a burden imposed on it because of the history. you know the concrete, the aggregate companies. other refuse and so on and so
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forth. so holistically we need to devise a blueprint so that those who have been impacted that justice is done. >> thank you very much. any other public comments? i thought we had some -- any other public? no other public comments. all right. we will take note of the communications, is that correct? item 5? >> correct. >> commissioner moran. >> mr. president, a couple of items under communication, "f" and "g" are basically the water supply report. i have reviewed those and had some conversations with staff. i think there is a couple of areas where the reports are
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incomplete. and other areas because of that incompleteness they are misleading. i would like to ask those reports be revised and reissued in january to correct those issues. >> items "f" and "g," that's the order without objection. >> and the other thing as we talk about regional water supply, i mentioned before that, we have our own plans of how we develop that supply, and boska has their own. another thing i would like to see in january is a discussion for the most appropriate way for us to coordinateinate our planning efforts with boska, with respect to the regional water supply. if you add that. >> without objection, that's the order, and for "f" and "g." any other comments from any
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other members? other commission business? >> commissioner caen. >> i have one thing, a couple of weeks ago, i was talking to my pharmacist, or a pharmacist. and i had some meds and i asked what they were for, and they were very old. and she said, just put them down the toilet. and then she got a lecture from me. and i know we have mentioned this before in our newsletter. but i think it should be mentioned again. especially coming from a pharmacist. it's very disheartening. >> commissioner. >> perhaps we could have -- i don't know if i am on. perhaps we could have an update on where our pharmaceutical project and program is. i know there was an effort and roll out with the fire stations
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and the police stations to do some collection. it would be great to hear if those programs are succeeding and the pharmacies involved. to get a handle and implication since we can't treat those pharmaceuticals in the treatment facility. >> i see nodding around. >> we will provide an update at the next meeting. >> thank you. >> move to the report of the general manager. >> so the first item on my report is an update from julie labonty, wsip. >> good afternoon, the focus of wsip has been on the large change of the calaban project and the status of the program. i will give a brief update. on the calaban project, i am
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pleased to report that the director will sign the seqa for the site and the first permit approval received today. the contract observation hill is proceeding well, they are averaging 15,000 cubic yards a day, that is better than expected. the contractor did a good job of protecting the site and responding to the major storms that struck the bay area a couple of weeks ago. noah does remain a big challenge for us on that project. so far we have been able to control that issue. it's not impacted construction. but we definitely need to keep that issue as one of our top
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priority in the field. it's actually the third highest risk on this project. talking about risks in our december update, we will elevate our number 1 and number 2 risks on the project to the trend level. which means that the likelihood of those risks to materialize is becoming greater. which means we must start to account for potential impacts for those issues our cost forecast. what we have done significantly, adding $6.9 million for the project for number 1 and number 2 risks. this is the additional excavation under the foundation that i talked to you about, and additional under the dam foundation. this is ongoing, and because of our starting position and that
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of the contractor is far apart at this point, we anticipate it to take longer. we seek approval for a first project revision that is based on the estimation of the cm. not the change order. because such a revision requires a 30-day notice to our suburban customers. we won't be able to come before you until january 22. and then we will come back to you after the change is negotiated and seek a second project revision that will take into account the final negotiated cost. this two-step approach is required so we have the funding needed to keep the project moving forward. now keeping the costs of the program, of the project within the approved budget, of course is our number one priority.
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and everyone on the project team is working really hard and committed to make sure that happens. but now as we are starting to get closer to finishing the finish line. we have encountered a few additional changes that are pretty significant. including the calaveros project, reaching this goal is still achievable but harder. to be sure that we put all of the best chances on our side, we asked our program consultant to take on a number of major tasks. including assessment of project costs and schedule changes, trends, risks and remaining project contingency. the goal is one, to try to identify cost efficiencies, where we may realize some
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savings. and be sure that the scheduled costs and impacts on the remaining projects and issues are appropriately identified in all forecasts. so as well in an effort to identify all project saving, i am personally going through our program management budget line item by line item. and i want to mention at the same time we have an ongoing independent audit conducted and sponsored by arbok. t the audit is performed by rw block. their area of focus is the cost and schedule and completion of the five major projects. calaveras and tunnel and crystal springs transmission upgrade project. and the other area of focus is all remaining soft cost on the
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project. we have worked closely with the audit team. providing them with the information they need, and giving them access to the project teams and sites. i have spent a lot of time with them the last few weeks. i personally welcome the review, and i think that everyone on our team do. i hope that it will help identify areas of cost efficiency. i am confidence once we are done with all of these ongoing efforts, we have a better picture of where we stand. and be able to have recommendation and deliver budget on schedule. >> and questions from members of the commission? seeing none. >> thank you. >> the next item is cleanpowersf update, barbara hale. >> good afternoon, commissioners, in your packet
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was a revised timeline for our cca program. let me highlight the changes from the last time we met. today will be activity under item 11. on our communications contract. we also have the rate fairness board scheduled this friday to consider our rates and possible preparation of a recommendation to the commission. they also have invited the local power folks, consultants, to come and make a presentation on what they are finding. we are on january 22, scheduling a presentation on the financial deliverables that local power has prepared for us. and then finally, the anticipated consideration of the noble contract in december has been postponed until june. given the fact that we are now incorporating the customer
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notification plan and education period. we don't need to bring that to you until that later date. those the changes to the timeline. the next activity, with the turn the calendar year, pg & e rates will change. that means when we talk about the premium that is represented over the pg & e rate will change. i want you to be aware that we will bring a revised estimate of the premium that a customer will pay in january. thank you. >> question. >> commissioner caen. >> is the pg & e going to be a mixed hybrid program? >> the pg & e tariff option, i assume that's what you are talking about. what they have proposed and put before the california puc for
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approval is alliance on their resources compliant with the renewal portfolio standard for about 22% i think by then. of their portfolio being california compliant renewables. and the balance will be renewable energy credits. so that distinguishes, it's a mix. in that some of the renewables they are proposing are california compliant and some of them are not. >> okay. i guess i will wait until january. >> well -- so i may have confused you with what i had said. in january what pg & e is going
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to be doing is implementing new rates for all of their customers. it won't be the green tariff option yet. that's still before the california utility commission. they don't have approval for that program yet, maybe until july or so. so january is a standard rate change that pg & e is implementing. >> any comments? >> thank you. >> so the next item is todd rydstrom on the mid-cycle bi-annual budget priorities. >> i do have a question, a comment about how the rate information will be presented. and in what context. because it feels like there are other pieces involved around the solar program, i know that's kind of come up again as a
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discussion item with some of the stakeholders. and then some of the efficiency programming. and i know as part of the cca and cleanpowersf, there is talk about low income residents and being allocated to them. i want a better understanding how it fits together and the implications, not from a rate perspective but programming perspective and solar programming in the context of the roll out of cleanpowersf. i wonder if there could be a larger conversation in january that can touch on all of those pieces? >> sure. we are scheduled to come to you in january with the rate recommendation or rate opinion of the rate fairness board. assuming that on the 14th, this
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friday, they continue to move forward on the schedule they are on. and at that time we can absolutely incorporate a knitting together for you how the cca energy efficiency and renewable funds will be spent. and how our programs, portfolio of resources, what it's made up of. so you can understand the value behind the premium. >> are we going to make a decision in january on the sflae rates? >> no, we are not proposing that, just to be the first-reading and the first opportunity for you to hear about the rates. >> great, i think as a communication piece and as pg & e comes online of their program
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and how we address that and communication strategy. and by that i hope that davis, our consultant would be far enough long to have a real plan in place. >> sure, we can do as much as that as we know about. in respect to the pg & e proposal, it may change quite a bit before adopted. the california puc suspended the hearing they calendared on the proposal to allow parties to sit down and settlement than dispute. when that happens, what pg & e came in the room with may change. and once we know what it is, we are in a better position to know how to talk about it. >> thank you. >> todd. >> todd is ready with his green
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approach with his bow ties. >> happy holidays first offal. todd rydstrom, general manager and cfo. i prepared the budget package and the most important part is about three pages worth. this is the time of the year when we come to you looking for insig insight. what you want to hear in budget meetings and the mayor has met with all department heads as well as cfos. and has given budget instructions to departments. i am pleased to announce that our department has a balanced budget. and you adopted and put forward that two-year budget. and we will go through the budget and visit key assumptions, and come back and
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share 10 year of projected impacts and 10 years of capital needs. still some big things to talk about. but it won't be the usual line item by line item analysis you have done in the past. what it does is afford us the opportunity to take a higher-level look at what the adopted budget is. it's just a little short of $1 billion, $899 million. and that includes the enterprise and waste water, hetch hetchy. this is on the slides for the viewing audience. and commissioners can you see on your monitors. as you propose and the mayor's office concurred and the board
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adopted. our budget has the key changes of capital. and the key changes are $70 million of capital investment starting in july. everything else is a small change. >> are you able to project the capital debt on the bonds? >> we are. >> you have it at 42.7, do you see that number changing in the future? >> we hope it will come down by a few million dollars. and the authorization you made for the approval of refunding of waste water bonds, before the board of supervisors today, could save a couple of millions. >> that's the real question, two million saved? >> yes, per year. so some projections before you
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will be of good news. >> this is debt service on what bonds? >> we have nearly $6 million of outstanding bonds now. large numbers. >> those rates are phenomenal. >> thank you, we have done very well by the rate payor. some key sustainable goals you have asked us to look at. we will assume those continue to be what you ask us to consider. in addition to what you have previously said some of your key policy initiatives. utility operations, sustainability, conservation and to be a good utility and
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partner. and the considerations here are listed. they are basically very familiar, a number are the policy documents you adopted as a commission, including environmental justice and stewardship and the policy technology adopted. what does this mean and how do we make the mid-cycle review helpful to you. one idea we had is to come before you and give you detailed updates to the capital plan. and the general manager and i and the deputy general manager think this may be helpful to get this in addition to the quarterly ones for the big programs. this could include updates for deferred or emerging projects. and it could include how those
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key investments, and there is nearly $7 billion of them over the next 10 years, how that is incorporating the good analytical points of the technology policy and the technology delivery systems of those projects. and to the funding sources that you will hear in item 10, and we will update you on those as well. the other idea we had, that we could come back and give you updates on your key policies. the investments you asked us to make on your behalf and the rate payor's behalf, and the key policies of which ones you would like us to highlight and bring back to you. and lastly, and then i will be quiet and listen to all your input. is to the degree you would want
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to have the controller's office present and you to give your remarks on your vision of how our report card that was recently adopted as the rate payor insurance policy, how you as a commission would like to see that developed and independently reviewed and assessed by the controller's office. with that i will listen and thank you for your comments. >> no changes to the budget schedule? >> no changes, and we are on track to meet all of those. >> all right, mr. moran. >> thank you, mr. president. this is going to be interesting. we never had a two-year budget before. we never had the option of not going through the budget line by line, the way we do. which is kind of exciting. and what you would like to do -- i tell you what my two interests are in that kind of unburdened
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review. first is to take a fairly high-level look at what the -- i think of it as the business plan for the three enterprises, and expressed in the capital program. and for each there are changes that we need to take note of. i am thinking especially in the water enterprise, it looks as though that boska is going to be able to issue that, which will change some of the rate profile we are looking at in an important way. clean water system, we are looking at a program that we now have give tentative approval to. and that along with the water department has changed the rate profile that we were so concerned about a year ago.
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and i think it would be important to understand that and discuss it. perhaps the biggest one, and this goes to what visioner eer commissioner vietor was saying, the power enterprise. we were concerned about the need to raise our municipal power rates. and we did and that changed the fundamental picture. and we have a cca program that has different burdens placed on it as a result of the board of supervisors. it's important for us to see how those changes are reflected in the financial program. and last year in order to make the power enterprise balance, we took a whole bunch of capital program and put it beyond 10
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years. which is not to ignore it, but said we would spend money in prolonging the life of transition, specifically, that would allow us to defer beyond the 10 years in the plan. we need to keep an eye on that, and see what the smartest way of dealing with that known need. which currently falls off the edge of the page. and i think the go-solar issues fit in this as well. but it's an opportunity to take a high-level look at the major drivers of the business plan for each enterprise. see what those long planned trends are and to assess the power rates. that's one interest. and the other interest, we have adopted a bunch of policy. i think it would be helpful to
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get an assessment of how we are doing on that. and each policy that we pass is really cheap when we pass it. and to implement takes work of staff and some is funded and some is not. it would be interesting to have a policy level review of how we think the organization is performing against the policy objectives over the years. and you named the policies. those are my two areas of interest.. >> when would you like to see those review? >> in january and february time frame, where we get into the budget. and we have freedom to do it in that time frame. i hope we could do it as part of the regular meeting schedule. we are getting pretty efficient in running these meetings. and i think we have created some time in the meeting slots that
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we don't have to do workshops. but i think we need to make time to have a thoughtful discussion in those areas. >> both this commission and the state legislature on a road to recovery, for the first time that the legislature will take up a two-year budget. and interesting to see how they will operate in that scenario. commissioner. >> yeah, i want to echo, i actually think, i don't want another meeting either. if we can do it in the context of these meetings, i think it would be great. but i think we want to have a mid-cycle conversation targeted on these things. and this capital piece as well, because things change and perhaps capital needs that we put out 10 years and need a


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